The thing about credit that most people don’t tell you is that you need credit to get credit. Not only that, but you need good credit. If you don’t have a credit history, or if your credit history is less than stellar, you may have trouble obtaining a loan. Fortunately, there’s a lender for just about every person regardless of their financial situation, meaning there is a lender out there who may be willing to loan you some cash without performing the obligatory credit check. Read on to learn more about where you can find these lenders.
Pawn Shops
If you’ve never dealt with a pawn shop before, chances are you’re under the impression that you must sell something to receive the cash. This is a common misconception. The reality is that pawnshops are in the business of holding items as collateral in exchange for cash. Though rates vary, most pawn shops will give a person between 20% and 60% of an item’s value in cash. They will then hold the item for a specified period of time, giving the owner a chance to buy back the item for the loan value, plus interest.
Payday Loans
Payday loans are short-term, high interest loans that typically trap individuals in vicious cycles of borrowing and repaying. Payday loan amounts typically don’t exceed $500, but they come with APRs of as much as 400%. If you take out a payday loan, you must repay the full loan amount, plus interest, with your next paycheck. So, not only must you pay unreasonable finance charges but also, you’re already behind financially come next payday.
Installment Loans
No credit check installment loans in Canada are the smart alternative to payday loans. These loans come with fair interest rates of between 22% and 32% and flexible repayment terms. How long you have to repay the loan depends on the amount you borrow. For instance, if you borrow $700, you will be put on a repayment plan of up to eight weeks and asked to make payments every two weeks. This type of flexibility ensures you can get the funds you need without creating an impossible financial situation for yourself in the future. Also, because installment loans require no credit check, your credit score will not be affected when you apply. You also do not run the risk of being denied a loan due to your credit score or lack of credit history.
Credit or no credit, you do have borrowing options. Do your research to find the lending solution that is best for your situation.